3 Life Changes That Call for Review
Financial planning is an ongoing process meant to build and protect your wealth as you go through life. Along the way, certain milestones can have an impact on your financial goals. When these crop up, it’s important to consider making adjustments to your strategy sooner rather than later.
While it’s by no means a conclusive list, here are some major life events that can warrant a revision of your financial plan:
- Coming Into Sudden Wealth — Whether you’ve just landed a whale of a gig or been left a sizable inheritance, sudden wealth can have an impact on your financial goals. In addition to allocating these new dollars in a tax-aware fashion, your estate plan may need updating too.
- Changing Jobs — Remember that 401(k)s are essentially portable. When switching jobs, be mindful of your accounts and handle them properly to avoid paying costly fees and penalties. It’s also important to maintain proper life, health and disability insurance coverage for you and your family; this may require special timing or out-of-pocket coverage.
- Evolving Family Structure — Whether you’re getting married or divorced, expecting a baby or supporting an aging parent with escalating medical needs, these changes have financial implications. From education funding and estate planning to exploring long-term care options, waiting too long to put a plan into action can be a costly mistake. Taking the time for a review of your accounts and strategy can benefit you down the road.
There may be hidden costs or advantages with life’s changes. Maintaining a close working relationship with a trusted professional can help you stay on track.
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